Harnessing customer data to build personalized experiences

For the banking industry, today’s digital economy has opened up new doors to personalized service opportunities.  Finding ways to improve P&L with existing customers, reduce churn in a market where customer loyalty is the exception rather than the norm, and simply provide quick and efficient services greatly depends on knowing your customers better and tailoring programs to meet their needs at any given moment in time.  In fact, implementing programs that target the individual customer with pinpoint accuracy is one of the keys to profitability in the financial industry.  But the ability to create these personalized services does not come from customer service representatives themselves.  Rather, it comes from an array of advanced analytical tools designed to help financial institutions gain better customer understanding with incredible speed, accuracy, and efficiency.

The technologies and tools that banks require in 2019 include immense data lakes where customer data is continually gathered, stored, and processed; machine-learning technologies supported by open-source languages; Google-like search engines that provide quick and easy access to a bank’s data; tools to analyze text, voice, video, and images; and analytical models that can instantly embed advice and predictions throughout customer dialogues in real time.1

You have the data. Now what?

Of course, the gathering of data is typically not the problem faced by FI CIOs and their sales and marketing colleagues.  On the contrary, financial institutions are challenged with far too much data on their hands, as customers leave a rich trail of details behind as they navigate through their digital lives. The real challenge lies not in acquiring data itself, but in better accessing, analyzing and leveraging that data to develop targeted, effective, timely, and ultimately profitable customer programs. Without the proper analytical tools in hand to help actually see what is going on with their customers, too much data causes CIOs and CMOs to struggle in coordinating, planning and executing relevant and profitable customer programs.

Banking executives know all too well that when it comes to sales and marketing in today’s financial world, time is of the essence. If it takes weeks or months to analyze and react to customer needs, opportunities are often obsolete by the time a communication reaches the right audience.  But it doesn’t have to be that way.

Today, technology providers exist that are changing the sales and marketing game for banks by providing real-time data crunching and proactive programming to drive tangible business results. Through dynamic analytics, machine learning, business intelligence, and other strategic technologies, partners enable sales and marketing staffs to analyze and strike in real time to capitalize on opportunities as they arise – not after the fact.

The future of personalized banking is now. To learn how some banks are transforming vast pools of data into meaningful customer data, read some of our latest customer case studies here.

1Amit Garg, et al.  Analytics in banking: Time to realize the value.  McKinsey & Company.  April 2017. https://www.mckinsey.com/industries/financial-services/our-insights/analytics-in-banking-time-to-realize-the-value